Samsung Electronics has projected a landmark third-quarter operating profit of R1.32 trillion (₩107.4 trillion), marking the first time a global technology company has surpassed R1.23 trillion in quarterly earnings. Driven by a nearly nine-fold year-on-year surge in operating profit, the result represents Samsung’s fourth consecutive quarter of record earnings, fuelled by an escalating global memory chip shortage as artificial intelligence infrastructure spending outstrips production capacity.
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Total third-quarter revenue is expected to rise 127% year-on-year to R2.40 trillion (₩195 trillion), with the semiconductor division accounting for the vast majority of gains. Soaring contract prices for conventional DRAM and NAND flash, alongside aggressive expansion in high-bandwidth memory (HBM), essential for AI workload processing, powered the performance. Analysts estimate Samsung’s HBM bit shipments expanded by nearly 50% quarter-on-quarter as the manufacturer accelerates efforts to narrow the market gap with rival SK Hynix.
While Samsung and Micron anticipate tight memory supply persisting into 2028, price appreciation is beginning to cool. Market research firm TrendForce forecasts DRAM contract price growth slowing to 10–15% in the fourth quarter, down from a 60% surge in the second quarter. Consequently, analysts project sequential profit growth to moderate to 8.2% in Q4, down from 20% in Q3.
Despite the record financial guidance, Samsung’s shares dipped 0.2% in early trading and remain down more than 25% from their peak in June. Investor hesitancy stems from ongoing debates regarding the long-term durability of the AI spending boom, compounded by a strengthening South Korean won, which diminishes the local value of foreign revenue.
Furthermore, the memory chip boom has created sharp internal headwinds for Samsung’s consumer-facing business units. Escalating component costs contributed to a larger-than-expected loss of over R18.5 billion in its mobile division during the third quarter. Simultaneously, Samsung’s contract foundry division remains unprofitable due to heavy fixed costs and low factory utilization, though operational efficiency is expected to improve as the firm builds advanced manufacturing capacity to challenge market leader TSMC.
Samsung is scheduled to publish its full divisional earnings breakdown and updated shareholder return policies on 29 October.
